This Wednesday, the European Union unveiled a plan to support cities that want to limit short-term rentals, such as Airbnb, in the face of the housing crisis.
The European institution intends to provide communities with legal bases to regulate short-term rentals in tourist areas, where housing is becoming increasingly hard to find.
“When the market fails to provide something as fundamental as affordable housing, public authorities have a responsibility to act,” said Teresa Ribera, the Commission’s vice-president, as she unveiled the measures.
From New York to Tokyo, via Barcelona and Paris, an increasing number of cities around the world have imposed or promised restrictions on tourist rentals in recent years.
But the measures taken to restrict their growth in Europe are often challenged in court by the platforms, discouraging some municipalities from acting.
The European Union aims to shore up the legal standing of local authorities by clarifying under what circumstances they can intervene without infringing the rules of the European single market.
Cities will thus be able to limit vacation rentals as well as the purchase of properties intended for short-term tourist rental in areas deemed to be “under housing pressure”.
The text sets out several criteria to define these zones, including the gap between real estate prices and residents’ incomes.
The forthcoming legislation will not apply to owners who occasionally rent out their primary residence for short periods. It will not also overturn rules already adopted locally before its entry into force.
And any measure regulating short-term rentals must be non-discriminatory, proportionate, and time-limited, for a maximum duration of five years.
The proposal must also be negotiated with the European Parliament and the member states before it can enter into force.
